RAJVI ENTERPRISE PRIVATE LIMITED,AHMEDABAD V. THE ITO, WARD-3(1)(3), AHMEDABAD

ITA 314/AHD/2025

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The case involves Rajvi Enterprise Pvt. Ltd., the appellant, contesting an order by the Learned Commissioner of Income Tax (Appeals) which upheld the addition of an alleged unsecured loan of Rs. 4,11,35,925 under section 68 of the Income Tax Act, 1961 for the Assessment Year 2016-17. The appellant argued that the addition included an interest amount that was already disallowed under section 36(1)(iii), leading to double disallowance. The appellant also contended that the interest paid was for the furtherance of business and should not be disallowed under section 36(1)(iii). The Tribunal found the additional evidence crucial for a just decision and thus set aside the CIT(A)'s order, remanding the case back to the Assessing Officer.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 840486 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2016-2017
• Appeal Filed On: 10-02-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: URVASHI MANDHAN
• Assessee Lawyers: NARPAT PARIHAR
• Keywords: Set aside; Additional evidence
• Section: 68

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद \u0011ायपीठ “डी“, अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD \u0015ी संजय गग\u001b, \u0011ाियक सद एवं \u0015ी नरे! \"साद िस#ा, लेखा सद क े सम&। ] ] Before Shri Sanjay Garg, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member आयकर अपील सं /ITA No.314/Ahd/2025 िनधा \u0010रण वष\u0010 /Assessment Year : 2016-17 Rajvi Enterprise Private Limited UL 11 & 12, Suryarath Bldg Panchwati, C G Road Ahmedabad- 380 006 बनाम/ v/s. The ITO Ward-3(1)(3) Ahmedabad – 380 015 \u0014थायी लेखा सं./PAN: AADCR 9138 C (अपीलाथ(/ Appellant) (\") यथ(/ Respondent) Assessee by : Shri Narpat Parihar, CA Revenue by : Ms. Urvashi Mandhan, Sr.DR सुनवाई की तारीख/Date of Hearing : 08/12/2025 घोषणा की तारीख /Date of Pronouncement: 26/02/2026 आदेश/O R D E R Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 09/12/2024 passed u/s.250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2016-17. Printed from counselvise.com ITA No.314/Ahd/2025 Rajvi Enterprise Pvt.Ltd. vs. ITO Asst. Year : 2016-17 2 2. The assessee, in this appeal, has taken the following grounds of appeal: “1. In law and in the facts and circumstances of the appellant's case, the Honourable CIT(A) has erred in upholding the addition of alleged unsecured loan of Rs. 4,11,35,925/- under section 68 of the Act 1.1. The Honourable CIT(A) has erred in law and in the facts by making addition under section 68 inclusive of Interest amount, thereby leading to double disallowance of Interest Expense to extent of Rs. 11,35,925 This amount already forms part of the disallowance under section 36(1)(iii) amounting to Rs. 12,62,2025. 1.2. The Honourable CIT(A) erred in not appreciating the fact that appellant has repaid the amount borrowed during the year itself and certain part in immediate succeeding years, thereby the appellant does not derive any benefit from the same. 2. The Honourable CIT(A) erred in law and in the facts of the case by not appreciating that the Interest amount paid is towards furtherance of business and therefore the same shall not be disallowed u/s 36(1)(iii). 3. The Ld. CIT(A) has erred in law and on facts in not properly appreciating and considering various submissions, evidences and supporting placed on record during the course of the assessment proceedings and not properly appreciating various facts and law in its proper perspective. 4. The appellant craves leave to add, alter, amend and/or withdraw any of the grounds or ground either before or at the time of appeal hearing.” 3. At the outset, the Ld. Counsel for the assessee has submitted that the Ld. CIT(A) has confirmed the impugned additions due to absence of Financial Statements (balance-sheet, etc.) of the lender parties. The Ld. Counsel has moved an application for admission of additional evidence before us, wherein, it has been pleaded that neither the Assessing Officer (AO) nor the Ld. CIT(A) called for such financial statements from the assessee. The Ld. Counsel has submitted that the assessee has obtained and wants to furnish the relevant financial statements of majority of the lender entities which includes (Independent Audit Reports, Audited Balance Sheets, Profit & Loss Accounts, and Cash Flow Statements) for the financial year 2015- 16 of Divyank Cotton Textiles Private Limited, Goldleaf Enterprise Printed from counselvise.com ITA No.314/Ahd/2025 Rajvi Enterprise Pvt.Ltd. vs. ITO Asst. Year : 2016-17 3 Private Limited, SHK Corporation Private Limited. He, therefore, has prayed for admission of the additional evidence. 4. We note that the evidences furnished by the assessee as additional evidences are very much necessary for the just and proper decision of the case. We, therefore, allow the application of the assessee for furnishing of additional evidences, set aside the impugned order of the Ld. CIT(A) and restore the matter to the file of the AO for de novo assessment. The AO will give proper and adequate opportunity to the assessee to furnish the necessary details and evidences 5. In the result, appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the Open Court on 26/02/2026. Sd/- Sd/- ( Narendra Prasad Sinha ) Accountant Member ( Sanjay Garg ) Judicial Member अहमदाबाद/Ahmedabad, िदनांक/Dated 26/02/2026 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की #ितिलिप अ$ेिषत/Copy of the Order forwarded to : 1. अपीलाथ% / The Appellant 2. #&थ% / The Respondent. 3. संबंिधत आयकर आयु' / Concerned CIT 4. आयकर आयु' ) अपील ( / The CIT(A)- 5. िवभागीय #ितिनिध , अिधकरण अपीलीय आयकर , सूरत /AR,ITAT, Surat/Ahmedabad. 6. गाड\u0010 फाईल / Guard file. आदेशानुसार/ BY ORDER, स&ािपत #ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT,Surat/Ahmedabad Printed from counselvise.com "